If
you and your spouse have been considering both bankruptcy and divorce,
make sure you consult with a bankruptcy lawyer to discuss the option of
filing jointly before proceeding with your divorce.

If you’re going to file bankruptcy, you’ll also need to figure out which type of personal bankruptcy you want to file:

Chapter 7 Bankruptcy:
This type of personal bankruptcy allows filers to receive a complete
discharge of many types of unsecured debts (like credit card bills,
medical debt and utility bills). However, the designations of the
divorce court don’t hold for bankruptcy filings, which means that any
jointly held debt that is discharged in a bankruptcy could possibly be
assigned to the other spouse.

Chapter 13 Bankruptcy:
This type of personal bankruptcy offers filers a period of three to
five years to catch up on past-due debts while staying current on other
debts. This is often the type of bankruptcy filed by people who are
looking to stop foreclosure or repossession. Because Chapter 13 doesn’t
involve a debt discharge, this chapter may affect the filer’s ex-spouse
in less obvious ways.

Everyone’s situation is different, so
consult with a bankruptcy lawyer in your area to determine what may
work best for you and your finances.

What Filing Bankruptcy Probably Can’t Do for You

Some debts, including child support and alimony (spousal maintenance) are not usually dischargeable in bankruptcy.

So,
if you or your ex-spouse is struggling to make these payments, personal
bankruptcy may not be your best choice in resolving those debts.